Economics Lesson 1.2 Economics Systems

An economy where the government makes most of the economic decisions.

An economy where consumers and businesses jointly answer questions of what, how, and for whom to produce.

An economy where traditional societies use ritual/habitat/custom to answer what, how, and for whom to produce.

An economy where the government and businesses jointly answer questions of what, how, and for whom to produce.

Stable and time-tested practices

Limited innovation and adaptation

Close-knit community decision-making

Slow to adopt improvements or new ideas

An economy where the government makes all key economic decisions

An economy driven by supply and demand

An economy based on free market principles

An economy that relies on foreign trade

Potential for universal employment and job security

Lack of incentives for innovation or efficiency

Emphasis on equal access to basic services

Possibility of poor quality products due to limited competition

It determines the literacy rate of the country.

It dictates the government's role in economic decisions.

It influences the prices of goods and services.

It has no impact on the economy.

The government

Consumers

Large corporations

International trade partners

A government regulation

A market force

A social contract

A financial institution

Encourages innovation and efficiency

Promotes overall economic growth and fairness

Increases government intervention

Reduces competition

Economic Efficiency and innovation

High level of economic freedom and choice

Income inequality and potential monopolies

Market failures (e.g., under-provision of public goods)

An economy where all decisions are made by the government.

An economy that operates without any government intervention.

An economy that incorporates elements of both market and command economies.

An economy where decisions are made solely through market forces without any regulation.